Published on 10/4/2010 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.39 million knock-out buffer notes linked to 15 stocks
By Angela McDaniels
Tacoma, Wash., Oct. 4 - HSBC USA Inc. priced $1.39 million of 0% knock-out buffer notes due April 13, 2012 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of Yum! Brands, Inc., Coca-Cola Co., PepsiCo, Inc., Colgate-Palmolive Co., Phillip Morris International Inc., Wynn Resorts, Ltd., Las Vegas Sands Corp., Starwood Hotels & Resorts Worldwide, Inc., Mead Johnson Nutrition Co., Broadcom Corp., Marvell Technology Group Ltd., Applied Materials, Inc., Boeing Co., Mylan Inc. and FedEx Corp.
A knock-out event will occur if the basket closes below its initial level by more than 16% on the final trading day of any month during the life of the notes.
If a knock-out event has occurred, the payout at maturity will be par plus the basket return, which could be positive or negative.
If a knock-out event has not occurred, the payout will be par plus the basket return, subject to a floor of par.
J.P. Morgan Securities LLC is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Knock-out buffer notes
|
| Underlying stocks: | Yum! Brands, Inc., Coca-Cola Co., PepsiCo, Inc., Colgate-Palmolive Co., Phillip Morris International Inc., Wynn Resorts, Ltd., Las Vegas Sands Corp., Starwood Hotels & Resorts Worldwide, Inc., Mead Johnson Nutrition Co., Broadcom Corp., Marvell Technology Group Ltd., Applied Materials, Inc., Boeing Co., Mylan Inc. and FedEx Corp.
|
| Amount: | $1,387,000
|
| Maturity: | April 13, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus basket return if basket closes below initial level by more than 16% on final trading day of any month during life of notes; otherwise, par plus basket return, subject to floor of par
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 5
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.25%
|
| Cusip: | 4042K05Z4
|
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